Mutoro Group Partners, LP
“A man with a bulldozer can dig a ditch faster than one with only a shovel, but he is not more efficient; he just has more capital to work with.” – Paul Krugman
Dear Partner,
The Fund was up 7.49 per cent for the first six months of 2016. As this is a short- term result, we should not read too deeply into it; but it is encouraging when we consider our substantial cash balance. The chart below depicts the makeup of the Fund on September 30th.
Portfolio Holdings
There are several different ways of investing well. But I am most pleased to have this result with the amount of cash we have than with little or none or through leverage.
We also have yet to purchase the securities of a new company this year. We are incredibly selective. I think that investors make their best returns not from the things they do but from the things they don’t do. Moreover, all market participants generate only a handful of truly great ideas over the course of a lifetime spent researching and purchasing securities. If they are shrewd they will have on hand the cash (and courage) to take advantage of those rare moments of brilliance. But I do not think the difference between those who over the long run post remarkably good results and those with mediocre results stems from a superabundance of insight. I think the difference comes from limiting the number and proportion of bad ideas allowed into a portfolio. And so we spend a lot of time considering what makes for a bad investment and how to avoid them.
Thank you for your continued partnership and confidence. If you have any questions or would like to make an additional investment, please let me know.
Sincerely,
Godfrey M. Bakuli
Managing Partner